get a life insurance premium quoteIf you are thinking about buying life insurance, you may wonder how much it will cost. A way to get an estimate of cost is to get a quote, but what does a life insurance premium quote really mean?

A Life Insurance Quote is an Estimate

Any quote you get is only an estimate of what you might end up paying. You can’t actually buy insurance based on a quote. You can only get an offer for insurance after you:

  • Decide which carrier to apply to and what sort of insurance and death benefit you need.
  • Apply for the insurance and answer questions about your health history and lifestyle.
  • Take a medical exam and blood tests.

All your information is sent to the insurance company underwriter who compares your information with the insurance company underwriting guidelines and gives you a rating. That rating says how much you will pay for the insurance you have applied for. What is different between companies is how their guidelines rate different health conditions.

How Accurate is Your Life Insurance Quote?

That depends on where it comes from. The more questions and information that is gathered before giving you the quote, the more accurate the quote can be. If all you are asked for is your age, weight and smoking or non-smoking, then you may not be getting a premium quote for life insurance which will be very close to what you’d actually have to pay.

Another problem can be that some online quote engines only offer you quotes from a limited number of companies. Or on some quote engines, you enter your information and then are contacted by an agent representing just one company. That agent will only be able to offer you insurance from that one company, which may not offer underwriting guidelines that are optimal for you.

How Can You Get the Best Quote for Life Insurance?

Short answer: an independent life insurance agent.

An independent agent works with many different highly rated companies, so they are able to match you to the best company for your health situation. Moreover, an independent agent can answer all your questions and help you determine your best options about type of insurance, amount of death benefits, and riders.

The Bottom Line

Only the insurance company can make you an offer of a life insurance policy after reviewing your application, exam, lab work, any doctor records they order, and any additional information they ask you. However, an independent agent, who is an industry expert, will be your best guide to finding the insurance company most likely to rate you favorably as well as be your guide throughout the process.

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